Name: Inventory Turnover

Definition: Inventory turnover measures how quickly the company sells and replaces its inventory. A higher turnover means products are selling fast and inventory isn’t sitting idle. Slow turnover may suggest weak sales, poor demand forecasting, or obsolete inventory piling up — all of which can tie up cash unnecessarily.

Interpretation:
• In '2022', BJ's inventory turnover was 10.93, reflecting efficiency in managing inventory stock. Industry average for Department/Specialty Retail Stores in '2022' stood at 4.73.
• In '2023', BJ's inventory turnover was 12.12, reflecting efficiency in managing inventory stock. The increase since '2022' reflects strengthening financial performance. Industry average for Department/Specialty Retail Stores in '2023' stood at 4.63. Industry average declined by 0.10 from previous year.
• In '2024', BJ's inventory turnover was 11.52, reflecting efficiency in managing inventory stock. The decline from '2023' may indicate some operational or financial challenges. Industry average for Department/Specialty Retail Stores in '2024' stood at 4.68. Industry average increased by 0.05 compared to previous year.
• In '2025', BJ's inventory turnover was 11.29, reflecting efficiency in managing inventory stock. The decline from '2024' may indicate some operational or financial challenges. Industry average for Department/Specialty Retail Stores in '2025' stood at 4.56. Industry average declined by 0.12 from previous year.
Overall, BJ's inventory turnover has steadily improved over the past 4 years.

Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory

Good Range: Typically 4 to 12 depending on industry.